Remax Press Release – Kelowna, BC (April 22, 2008)
“While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released today by RE/MAX.”
“Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues. Innovative financing has become key to homeownership in today’s environment – with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.”
In Saskatoon, the report indicates “A two-bedroom, 900 square foot bungalow in good condition can be purchased from $200,000 in areas such as Confederation Park, Fairhaven, Meadowgreen, Mayfair and Westmount. The least expensive home sold in the city to date was a 535 square foot bungalow which traded hands for $80,000.”
Remax Saskatoon agent, Ivan Toledo told Star Phoenix Business Editor Murray Lyons that “people looking for affordability are discovering neighbourhoods such as King George and Westmount, where some existing houses are for sale and Toledo is working with two different builders on in-fill projects, building semi-detached, two-storey houses.”
“They will buy a little drug house or whatever on a 50-foot lot, knock it down, subdivide it and put up new construction,” Toledo said. “We have the lowest cost new construction in Saskatoon.
“It’s basically a Stonebridge (style) house and if Stonebridge is selling for $360,000, we’re selling ours at $270,000.”
Read to Remax Affordabilty Study 2008 here.
Read the Star Phoenix story here.
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